I am facing difficulty with trailing stops.I am stopped out because of the whipsaw movement,even when the market moves in the direction I thought.
yesterday entered short (EUR/USD) @ 1.3317 with a trailing stop of 15 points.It peaked to 1.3336 and then dropped to 1.3258.i was stopped out @ 1.3332 ending my deal in a lose.
How can i use this trailing stop in a better way.If i use a higher trailing stop points then I might loose on the gains that i have made.Is there any other mechanism where i can control it more efficiently.I was wondering how position traders use this?
Depending on your broker's spread, a 15 pip trailing stop might a little tight. For example, if EUR/USD spread is 3 pips, you're actually using at 12 pip stop. That provides very little wiggle room for your trade.
You said you sold @ 3317 with trail stop of 15 pips. Could I ask what your stop loss and profit target were?
I hadn't put any stop loss since I was using trailing stop.If i had used the stop loss it will be the same 15pips.I was not sure of my traget profit, had estimated in the range of 1.3280, then as I was using the trailing stop thought let it get stopped out by itself- sacrificing the 15pips.
Appreciate if you could suggest any tool to get the target profit.Support and resistance was what I used (any tip how to use this tool more efficiently).